Yes, but only if the credit is being extended primarily for personal, family or household purposes. The CFPB views such credit transactions as being “in substance (if not form) consumer credit . . . .”  Moreover, the CFPB does not differentiate between revocable and irrevocable trusts for this determination.

For resources related to our guidance, please see:

• Regulation Z, Official Interpretations, 12 CFR 1026, Paragraph 3(a), Comment 10(i) (“In some instances, a creditor may extend credit for consumer purposes to a trust that a consumer has created for tax or estate planning purposes (or both). . . . Regardless of the capacity or capacities in which the loan documents are executed, assuming the transaction is primarily for personal, family, or household purposes, the transaction is subject to the regulation because in substance (if not form) consumer credit is being extended.”)

• Final Rule, Truth in Lending Act (Regulation Z), 78 Fed. Reg. 79730, 79772 (December 31, 2013) (“The same commenters also asked the Bureau to clarify that only revocable trusts are covered by the proposed language, noting that mortgage loans made to other types of trusts are niche products that do not meet GSE underwriting guidelines, are subject to substantial due diligence and as such should not be subject to Regulation Z. . . . In addition, because the proposed comment clarifies the coverage of loans made to trusts under Regulation Z is based on the purpose of the loan, rather than on the loan's frequency in the market or its compliance with GSE underwriting guidelines, the Bureau declines to add language to the comment specifying that the trusts covered by the proposed comments are limited to revocable trusts.”)